From Wiki – ‘Ivo Adam Rex Mosley is a British writer. His varied career has encompassed ceramics, poetry, social commentary, opera, fiction and music theatre. His focus currently (2017) is on works of non-fiction relating to politics and monetary reform. He lives in London with his wife.’
Welcome to my website! This is my latest book: BANK ROBBERY
SUMMARY of BANK ROBBERY:
The most destructive process in the world today is almost a complete secret. Those who know about it mostly keep quiet, and those who talk about it are mostly ignorant. And yet it’s not hard to understand, and reform would be quite simple.
The process is that money is created as fictitious debt: ‘credit’ money. Historically, this method of creating money was repeatedly made legal for one simple reason: to increase the power and wealth of those who already have power and wealth. Whenever the method was made legal it led to decline in civilization, as elites got more remote from the productivity that makes them rich and less conscious of the effects their affluence has on the world. This happened historically in Mesopotamia, in ancient Athens, in ancient Rome, in the Italian city-states, in England, in the USA – and today it’s happening all across the world.
Creating money this way means that huge amounts of money can be created out of nothing for the rich and powerful. The simplest illustration of how it works is the story of its being made legal in England, way back in 1694.
King William III wanted to go to war with France. He sent ministers around the coffee houses of London to raise money, but they could only raise enough to send a single secret agent to Calais. Parliament, liking the idea of war, passed the Bank of England Act to allow money to be created as debt. The Bank created £1.2 million of debt from itself to the King, who could then spend the debt as money by simply re-assigning some of it to whomever he paid. The King was almost immediately able to raise an army and invade France.
Parliament voted for the project because it appealed to both elements of the British ruling classes: the old feudal class whose life-blood was war, and the new ‘money-order’ whose life-blood was trade and business. These are the ruling classes we still live with today. This story illustrates how, given an expectation of profit, banks create money as ‘transferable debt’ out of nothing for the power-hungry. The result is the dying world we live in today.
Creating money as debt powers many bad effects. It powers colonialism, it powers growing inequality. It powers the growth of corporations, guided only by profit-seeking. It makes growth an inevitability: economies cannot be healthy without growth, because money is always being siphoned off from those who spend to those who hoard. Unnecessary growth ransacks and pollutes the natural world. Power goes to people who only care about getting more, and such people are the worst people to have in charge. As for the rest of us, the method is like a magic trick: it is easily concealed, so reform never becomes a priority.
Money today is debt owed by a bank, which it will never pay. Banks do pay out cash when it is demanded of them, but cash is also fictitious debt – in this case, from the government (via the ‘central bank’). So the system is a collusion between government, banks and plutocrats. (Marxism is only different in that government monopolizes the power and profit supplied by the system: see the 5th plank of Marx’s Communist Manifesto.)
The laws which make this method possible may not be as obviously unjust as laws that authorize slavery (for instance) but they are every bit as destructive. They fundamentally cripple any hope of real democracy. The world is given over to money making for a few, rather than to creative sharing among many. Huge stores of goodwill go to waste.
There is no need to create money this way. Money is abstract property, a token of value recognized in law. It can be created as property pure and simple, in quantities calculated to keep its value constant, and spent by the government in lieu of taxes. This has frequently been the case historically.
If we want to survive and flourish as a species, we must reform and create money in a fair and equitable way. After that, debt would be a private arrangement, not a commodity to be bought and sold, created out of nowhere for profit.
More information: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy
Joseph Huber, ‘Sovereign Money’.
Ivo Mosley, ‘Bank Robbery: The way we create money, and how it damages the world’.
Henry C. Simons, ‘Economics for a Free Society’.